National Republican., 1887-10-26
The Legal Tenders in Circulation.


A correspondent in Virginia, after dis
cussing and indorslng the articles OF the
NATIONAL REPUBLICAN on the questions
OF finance, asks what the laws are In relation
to the amount OF legal tenders that are
now out and could be issued. He says;
The paper currency OF the government, tina
is the greenbaek, based upon the faith of the
government and also upon gold aud silver, i'
the best and safest money In the world, and the
cheapest for the people too.
The time Is coming when the Republican
party will have to meet these financial ques-
tions, and of course IL will decide for the best
and believe will decide for the policy that
you advocate, and by so doing will draw to its
support all the factions Of greenbackers aud
those who believe in extending the currency
You propose to give these men who generally
are Republicans the opportunity OF a fair hear
ing In the party, and the policy you adyocit'
will inspire life in our lauguishing bushes
affairs.
You are impressing your ideas and the i'm
portance of them in the strongest manner uDo'
the minds of all who read the NArioSAL RE.
PUBLICAN.
Republican prospects and chances are fine t.
Virgins. We shall have great revival aud -
grand victory in the coming election.
The.sct Of Feb. %, 1862, authorized the
issue OF $3.50, ,000, 900 OF legal tender notes
July II, 1862, another Sl50,000, 900 was or
dered, and March 8, 1858, still auothtr
$l5O,OOO,O 900 was authorized. These are al
the acts directing or authorizing the ISSUE
OF legal tender notes, and $3.50, 900 ma,
be considered the maximum authorized b>
law, as It certainly was the largest amount
ever in circulation.
An act approved June 20, 1874, was the
first contraction by law OF this currency,
the maximum amount to be outstaudin.
at any time being placed at S3s9, 900, 900, N,
part Of which was to be held or used as
reserve.
| The specie resumption act, approved Jan
| IA, 1875, removed the limit on the issue o
rational bank notes, and directed the Secre
tary TO redeem all legal tenders outstand
ing In excess Of $3O0,00O,000. Thus tn
minimum amount of legal tenders wa
serves held in the treasury.
The act approved May 81, 1873, .forbi
any further retirement of legal tender note
and fixed the minimum limit at the amour
then outstanding, which was $3i6 ,6sl ole
That amount is now supposed to be a par
OF the currency Of the country.
This is. however, not true. A yer
large percentage of these notes has nece'
sailly been destroyed IN accidents. no,
much it is impossible to tell with any az
proach to accuracy, aud several millions {
them are held In the treasury as reserves
1t is safe to say that there Ia not so muc
as $500, 100000 in legal tender notes 10 cit
culation among the people OF IN the ban
vaults as reserves.
As to their being good money no one di:
putes that. The faith OF the United State
is pledged for their redemption, aud tha
makes them as good as any money in tb
world. The only trouble is there is mt
enough Of them or of any other kind {
money in the country to transact its bu;
} ness, and this Democratic admini,trattc
continues TO draw in what there Is, an
bury 1t in the treasury vaults.